LONDON, Aug 26 (Reuters) – British energy bills will rise 80% to an average of 3,549 pounds ($4,188) a year from October, regulator Ofgem said on Friday, calling it a “crisis” that needed to be tackled by urgent and decisive government action.
Below is reaction to the price cap rise:
NADHIM ZAHAWI, FINANCE MINISTER
“I am working flat out to develop options for further support. This will mean the incoming Prime Minister can hit the ground running and deliver support to those who need it most, as soon as possible.”
RACHEL REEVES, OPPOSITION LABOUR PARTY FINANCE SPOKESPERSON
“This is incredibly worrying and will strike fear in the heart of many families. We cannot wait any longer to act. This is a national emergency. The Tories (Conservatives) must freeze energy bills now so households don’t pay a penny more in winter.”
FRANCES O’GRADY, TRADES UNION CONGRESS GENERAL SECRETARY
“Nobody should have to worry about heating their homes this winter. But millions are facing bankrupting bills in the months ahead.”
“Today’s energy price rise will be hammer blow to family budgets and tip many households into fuel poverty. Ministers must immediately cancel this catastrophic increase … And to make sure energy remains affordable to everyone, they should bring the energy retail companies into public ownership.”
MATTHEW FELL, CONFEDERATION OF BRITISH INDUSTRY POLICY DIRECTOR
“Left unaddressed, October will see millions plunge into fuel poverty with the consequences felt right across the wider economy.
“Government support to date has been right to focus on the most vulnerable customers, but the scale of help must be urgently reviewed in light of today’s announcement.”
DARREN JONES, CHAIR OF UK PARLIAMENTARY COMMITTEE ON BUSINESS, ENERGY AND INDUSTRIAL STRATEGY
“The next prime minister will have to deliver significant amounts of financial support to households and businesses, similar to help offered during the Covid pandemic.
“The next chancellor will have to offer business grants and not just temporary tax and business rate cuts … the sheer number of households needing help justifies a rapid and broader response from government.”
SPOKESPERSON FOR E.ON, EUROPE’S LARGEST OPERATOR OF ENERGY NETWORKS
“Energy suppliers cannot tackle global price rises alone. The solution is going greener; reducing how much energy we use and producing what we need from more renewable sources.
“We’ve called on the government to increase the pace and scale of energy efficiency schemes. We need to end our reliance on gas, switching instead to cleaner and more efficient forms of heating.”
ISAAC DELESTRE, RESEARCH ECONOMIST AT BUDGET THINK TANK IFS
“Looking beyond this winter, energy prices also look like they will remain very high well into next year … Whoever becomes the next prime minister will most likely be announcing a substantial package of support very soon.”
MARTIN LEWIS, CONSUMER RIGHTS CHAMPION
“This is a catastrophe, plain and simple, unaffordable.
“If we do not get further government intervention on top of what was announced in May then lives will be lost this winter by too many people to think about because of these unaffordable, terrible rises in energy bills.”
NICOLA STURGEON, SCOTLAND’S FIRST MINISTER
“This is simply unaffordable for millions. It cannot be allowed to go ahead. This rise must be cancelled, with the UK government and energy companies then agreeing a package to fund the cost of a freeze over a longer period, coupled with fundamental reform of the energy market.”
CRAIG LOWREY, SENIOR CONSULTANT AT ANALYSTS CORNWALL INSIGHT
“Today should be seen as a wake-up call to policy makers that short-term thinking and triage of the energy system is not enough. Without real change to the energy system in this country it is consumers, suppliers and the economy that will all continue to suffer the consequences.”
